Is the Future Hybrid?

By Christian Rose, Partner at Ginkgo, Managing Director of Ginkgo China 

‘Is the Future Hybrid?’ was published in the winter 2022 edition of the German Chamber Ticker. Editor: Noga Feige, Senior Editor of the Ticker Magazine. Visuals: Matter Design.

Not so long ago, working life consisted of predominantly traditional structures that were one thing above all: fixed attendance times at the office. Pandemic rules, regulations, and official recommendations forced employees worldwide to stay home, work from there and communicate by video conferencing. This led to a mass migration to Zoom, Microsoft Teams, and other APPs, and a new way of working emerged.

In this article, we will examine the advantages and disadvantages of the different work models today  – and review the best methods for German companies positioned in China.

The New Normal: Home Office, Hybrid, and Remote Work

The shift to home office posed many challenges for employees: from social isolation to child care at home. Many, however, also enjoyed the new situation and the newfound flexibility. In the beginning, the move to the home office only meant a new working environment. But gradually, a shift in the flexibility of working hours and conditions has also occurred. As a result, the general expectations of work-life balance have evolved, leading to various flexible working models that characterize our “new normal” today. Home office, or remote work, allows employees to work from any location (home or any other external location). Hybrid work, on the other hand, provides the freedom to work flexibly in terms of location and time within a predefined framework. Under the hybrid model, employees can work in the office, but are not obligated to do so.

Two Years Later: Advantages and Disadvantages of the New Working Models

Countless studies and surveys from the last two years show that work performance has increased since the outbreak of COVID-19. In Germany, for example, employees work on average about 1.4 days more per month than before, as shown in a study by the Munich-based Ifo Institute. At the same time, many people experienced stress and anxiety in the home office, especially at the beginning. The reasons were manifold: problems due to blurring lines between work and one’s private life; psychological and physical effects; isolation; a new search for meaning, etc.

However, a clear advantage of the new work concepts quickly became apparent: employees can ‘jump’ between calls and meetings without leaving their workspace. This means that the time between calls can be significantly reduced, and the number of daily calls and meetings  – increased.

Advantages of working from home:

• Digital communication à Efficiency
• More flexible schedule à Efficiency
• Take breaks when needed à Efficiency
• Optimized workspace à Efficiency
• Further home office locations

On the other hand, the interaction between employees and their superiors has taken a blow. No video conference or phone call can replace professional, personal, and emotional exchange in the office. Managers have had to adapt and update how they interact with their employees over the last two years to receive authentic feedback. For many managers, it was – and still is – difficult to keep a finger on the company’s pulse because there are no clear rules and methods for exchanging information.

Disadvantages of working from home:

• Distractions
• No or not enough exchange with colleagues; feeling lost, loneliness
• Insufficient communication, not enough emotional feedback
• Longer working hours / work-life imbalance

No “New Normal” in China

 A look at China reveals a completely different picture than in the West. Here, companies and employees prefer to work in the office and largely reject home office, hybrid, and remote work models. Since the pandemic’s beginning, working from home or abroad has gained popularity in China from time to time, but not to the same extent as in Germany or other Western countries.

Shanghai is a shining example of China’s disapproval of flexible work models: Shortly after the lockdown in Shanghai ended at the beginning of June 2022, most companies required a five-day on-site presence from their employees, intending to increase interaction in the workplace. Even after almost three years of lockdowns and travel restrictions, customers in China expect to meet employees on-site. The decisive factor for this attitude is the Chinese work and supervising philosophy: productivity and presence are tied together, and are decisive success criteria. Employees in China have to physically show that they are working. This means home office is treated as a last resort, forced regulations rather than a tool to improve employee wellbeing. This serves the superiors, who want to see the ‘perceived’ productivity, and to the employees, who want to prove they complete their work hours.

In conclusion, Chinese companies have, so far, been reluctant to change their way of working from offline to online – for several reasons:

1. Management is not yet sufficiently prepared; Managers cannot properly lead/control employees at home.
2. Companies in China are not yet well prepared digitally for shifting to remote/hybrid work
3. Traditional work perceptions, as outlined above.

How Will Our Work Life Look Like in Five Years?

 A few years of experimentation are certainly not enough to draw definitive conclusions on the best working method. For Germany, we see that both large and small companies are introducing new working models – from the home office and hybrid concepts, where employees can choose whether to work exclusively at home or occasionally in the office, to complete remote work from anywhere.

Even though flexible working models are a recurring theme in China, and the so-called 996 culture – i.e., working from nine in the morning to nine in the evening, six days a week – has been officially abolished, many local companies continue with traditional work methods. This shows that people’s behavior, preferences, and work ethics are highly influenced by culture.

Office or Home: Recommendations for German Companies in China

 Foreign companies in China should be aware of the Chinese work culture, and adjust accordingly. Those who wish to provide hybrid solutions for work should provide employees with the necessary technical equipment. The key is to build trust with local employees and test different methods before rolling out a one-size-fits-all solution. The cultural differences, especially in mixed teams, should be taken into account. It is important to recognize cultural differences, especially in mixed teams, and teammates’ backgrounds and personal preferences. One possible approach for German companies in China is to build a flexible team that allows home office or hybrid work to some extent, and involves employees in the decision-making process.

Conclusion

 The current trend in China is for employees to continue working from the office full-time, unless local lockdowns prevent so. In Germany, on the other hand, a more diverse and flexible approach can be found since the beginning of the pandemic. German companies working in China are well advised to listen to their employees and respect the local culture. While home office, hybrid, and remote work all offer certain advantages, they are not without shortcomings, and are not suitable for everyone. German or international companies in China should aspire to build mixed teams and cautiously try out flexible working models, while involving their employees in their thought process.

Christian Rose is a Partner at Ginkgo and the Managing Director of Ginkgo China in Shanghai. He is a proven expert in digital transformation and is active across all industry sectors. Since graduating with a degree in mechanical engineering and industrial engineering, he has been working in the consulting business, supporting companies from strategy to implementation and operations. With over 20 years of consulting experience, Rose has already accompanied numerous global transformation programs and advised global corporations on developing and implementing IT and digital strategies, process optimizations, and innovation.

Founded in 2006, Ginkgo Management Consulting is an independent strategy consultancy specializing in complex digitization projects. The consulting spectrum includes the management and implementation of digital and other comprehensive transformation projects, as well as classic CIO consulting services.